Determinants of Islamic Fintech Adoption among Young Consumers in Pakistan: The Moderating Role of Shariah Compliance Awareness

Abstract

The present study, based on integrative technology acceptance, risk-trust and Shariah-signalling theories, explored the factors influencing the intention to adopt Islamic finance technologies by young consumers in Pakistan. The study was conducted on 462 respondents using data collected from PLS-SEM to evaluate the direct, mediating, moderating and predictive relationships. Among the factors influencing adoption intention, there was a significant increase in the factors of trust (performance expectancy, effort expectancy and social influence) and a significant decrease in trust (perceived risk). Perceived Shariah transparency had a positive influence on trust, which was the best predictor of adoption intention, thereby moderating the influence of perceived risk and Shariah transparency. The level of awareness about Shariah compliance greatly enhanced the correlation between the perceived transparency of Shariah and trust in Shariah. The model also explained and predicted well. The results pointed to the combined role of technological advantages, trust and communication of Shariah in an open way, and consumer awareness.